To combat inflation, the Federal Reserve has been continuously hiking interest rates in an attempt to drive spending down as consumers realize higher commercial interest rates on mortgages, credit card APRs and other loans. The Fed’s last rate hike raised interest rates by 0.25%, bringing the federal funds rate to a target range of 5.0%-5.25%. There is a silver lining, however — as the federal funds rate increases, interest rates on high-yield savings accounts and CDs typically do too. Offering a high APY (annual percentage yield) on accounts is an effective way for banks to compete for customers and attract deposits.
Continued Article: https://www.kiplinger.com/personal-finance/banking/savings-rates
